FYG,FUYAO GLASS(SH:600660) Guoxin Securities·2025-04-20 12:25Investment Rating - The report maintains an "Outperform" rating for Fuyao Glass [5][48]. Core Views - Fuyao Glass achieved a 46% year-on-year growth in net profit for Q1 2025, with revenue reaching 9.91 billion yuan, a 12.16% increase year-on-year [1][9]. - The company is positioned as a global leader in automotive glass, benefiting from trends in smart glass technology and an expected increase in vehicle glass area and value per vehicle [2][48]. - Fuyao's competitive advantages include scale effects, high automation, a vertical supply chain, and low labor costs, which are expected to drive growth in high-value products and international expansion [2][48]. Financial Performance - In Q1 2025, Fuyao Glass reported a gross margin of 35.40%, a year-on-year decrease due to accounting adjustments but a quarter-on-quarter increase of 3.28 percentage points [1][15]. - The net profit margin for Q1 2025 was 20.50%, reflecting a year-on-year increase of 4.79 percentage points [1][15]. - The company forecasts revenue growth from 33.16 billion yuan in 2023 to 60.50 billion yuan in 2027, with net profit expected to rise from 5.63 billion yuan to 11.85 billion yuan over the same period [4]. Market Trends - The automotive glass market is expected to enter a new growth phase driven by the increasing integration of smart glass technologies, with Fuyao's high-value product share projected to rise [2][48]. - The global automotive glass market is anticipated to grow from 617 billion yuan in 2020 to 1,157 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 8.77% [36]. - Fuyao's global market share in automotive glass is estimated to exceed 36%, with a projected increase in sales volume to 156 million square meters in 2024 [2][27]. Production Capacity and Expansion - Fuyao is actively expanding production capacity in various regions, including North America and China, to meet growing demand [2][27]. - The company plans significant investments in new production facilities, including a 3.25 billion yuan investment in Fuzhou and a 5.75 billion yuan investment in Hefei for automotive glass production [28][30]. - The company has established a strong presence in North America, with ongoing expansions aimed at capturing high-value product segments [32].